Thursday, August 27, 2015 AgriVisor Afternoon Marketwatch

Thursday, August 27, 2015
***** Corn futures climb 1 3/4 to 2 cents; soybeans up 8 1/2 to 15 3/4; Chicago wheat dips 2 1/4 to 5 1/2. *****

   Weather forecasts shifted slightly drier and helped support soybean prices. Scattered showers could fall over the Western Corn Belt tonight or early this weekend, but chances for rain are small for the Eastern Corn Belt over the next few weeks. Temperatures are expected to warm considerably starting next week. 
   The weekly export sales report was somewhat supportive of corn and soybeans. For both corn and soybeans, net reductions to old-crop book were contrasted against large commitments for the 2015/16 marketing year. Mexico was a big buyer of new-crop corn while China agreed to buy nearly 33 million bushels of soybeans for delivery in 2106. Wheat sales were up 68 percent over the previous week's tally. 
   Wheat was the laggard on Thursday. Russia's crop agency raised its output estimate by 2 million to 101 million metric tons. Production estimates were upped for growers around the world. A group from France estimated that country's crop to have produced record yields. The International Grains Council issued a report that projected global wheat stocks at a 29-year high. 
   Chinese stocks were able to rebound on Thursday, triggering a 'risk-on' trade for global markets and lending some support to the commodity space. Oil futures were up a whopping 10 percent at one point in the session. Soft commodities were broadly higher. Copper and silver were up as gold was down slightly on hedge liquidation. 

***** Hogs traded with a slightly weaker bias on Thursday; cattle futures made solid gains on the back of technical buying. *****    

   The cash hog market was steady as wholesale pork sold off further, placing pressure on the futures board. Still, losses were limited and futures were trading within Wednesday's range. A flattened 100-day moving average hovers just above the market to serve as technical resistance for the nearby October contract. 
   Cattle futures bounced from oversold territory on a rally that was also aided by sticky wholesale prices. Futures are still down for the week, so there may be some pressure on cash prices when the market develops on Friday. So far, bids are near $144 live against offers at $150.